Crypto Today: Bitcoin, Ethereum, Dogecoin gain traction while altcoins add $22B as Trump pulls ahead

Bitcoin, Ethereum, Dogecoin lead market rally as Trump pulls ahead

• Bitcoin (BTC) price briefly breached the $70,000 mark, while Dogecoin led the altcoin market rally as the US presidential election gets underway on November 5.
• Ethereum (ETH) gained 2.6% but failed to breach the $2,500 level. 

Bitcoin, Dogecoin and altcoin market updates 

• Bitcoin price prodded itself above the $70,000 mark on November 5 as market polls signal early lead for Donald Trump. 
• Dogecoin emerged the best performer among the top 10 ranked crypto assets, scoring approximately 11% gains within the daily time frame. 
• Promising friendlier regulations, Donald Trump has emerged as the overwhelming favorite candidate with crypto predictions markets.
• Altcoin market capitalization (TOTAL3) gained $22 billion on Tuesday, signaling bullish momentum returning to the crypto markets.

Chart of the day: US Elections Forecast, Trump vs. Harris

As the US presidential election kicked off on November 5, early signals suggest that the Republican presidential candidate Donald Trump could gain an early lead. The chart below shows the distribution of bets placed on the US election on Polymarket, a prediction platform that allows users to wager money on real-life events. 

US presidential election forecast: Trump  vs. Harris Nov 4 - Nov 5 | Source: Polymarket

According to the latest data, traders wagered another $500 million over the last 24 hours, with the majority of the new crypto bets placed in favor of Donald Trump. Notably, the markets closed with $2.8 billion bets on November 4, but that figure has now skyrocketed to $3.2 billion by lunchtime EST on November 5. The odds on Donald Trump increased from 56.4% to 61.1%, over the last 24 hours, while bets on Harris dipped from 43.5% to 39.0%. 

This surge in Trump bets suggests growing conviction among crypto bettors that the self-acclaimed “crypto friendly” candidate could gain an early lead and the official polls kicked off.

Market updates 

• Two global finance giants, SWIFT and UBS Asset Management, have partnered with Chainlink blockchain oracles protocol (LINK) to integrate cryptocurrency assets into traditional finance markets. 
• Defunct crypto exchange Mt. Gox shifted 32,371 Bitcoin (BTC), worth approximately $2.2 billion, to anonymous wallets, according to on-chain data analytics platform Arkham Intelligence, sparking major speculation.
• Alvin Kan, COO of Bitget Wallet, has stated that the upcoming FOMC meeting on November 7, could intensify volatility within the altcoin market. 

"The Federal Reserve's interest rate cuts may have a noticeable impact on altcoins in several ways. These cuts improve market sentiment by lowering borrowing costs and boosting liquidity, which can lead to gains for altcoins, particularly those with lower market caps. The relationship between altcoins and Bitcoin is affected; as lower rates increase the prices of risk assets, altcoins typically rise alongside Bitcoin. 
The anticipation surrounding rate cuts fuels market speculation, leading to heightened volatility in altcoin trading as traders react to the news. This combination could create an environment ripe for both opportunities and risks in the altcoin space."

  - Alvin Kan, COO, Bitget Wallet

On-chain updates 

• Ethereum investors have staked over 150,000 ETH in the last three days.

According to official ETH2.0 beacon chain data. The total ETH balances staked increased from 34.5 million to 34.6 million ETH between November 2 and November 5. 

Ethereum Beacon Chain Staking data, November 2 - November 5, 2024 | Source: Beaconcha.in

This signals that major ETH stakeholders are opting for neutral positions amid intense market volatility surrounding the US election.  

• Dogecoin traders mounted $128 million worth of leveraged LONG positions on November 5, as prices surged 11% within the daily time frame.

Dogecoin Leverage Liquidation map, November 5, 2024 | Coinglass

The Bullish traders' reaction came after Elon Musk made another series of positive DOGE mentions during an appearance on the Joe Rogan podcast on November 4.